Sir Keir Starmer has warned Russian billionaire Roman Abramovich that the “clock is ticking” for him to hand over the £2.5bn he received from the sale of Chelsea Football Club.
The prime minister told MPs on Wednesday that a licence has been issued, allowing the money to be transferred to the people of Ukraine suffering at the hands of the Russian invasion.
The announcement is the first major move in transferring Europe-based Russian assets for the rebuilding of Ukraine. It follows a mini-summit between Sir Keir and the Belgian prime minister Bart de Wever last week to discuss Russian assets, most of which are based in Belgium.
Speaking during PMQs, Sir Keir said: “The clock is ticking on Roman Abramovich to honour the commitment he made when Chelsea FC was sold and transfer the £2.5bn to a humanitarian cause for Ukraine.
“This government is prepared to enforce it through the courts so that every penny reaches those whose lives have been torn apart by Putin’s illegal war.”
The multi-billion-pound proceeds have been frozen in a UK bank account since the sale in 2022, when the UK government sanctioned Mr Abramovich after Russia’s full-scale invasion of Ukraine due to his close ties with Putin.
The oligarch had pledged to donate the proceeds from the sale to the people of Ukraine, but he has so far failed to reach an agreement with the government on a way forward – and the funds remain frozen.
Wednesday’s decision to grant a licence for the transfer is an effort to force Mr Abramovich to fulfil his promise before the government resorts to legal action. While a hard deadline has not been set, the government expects him to act within the next few months.
But The Independent understands that Mr Abramovich has told the government that he cannot transfer the money until a case brought against him by the government of Jersey over the source of his wealth is dropped.
Mr Abramovich is not expected to make a public statement immediately on the announcement.
The government previously raised the possibility of legal action in June, when chancellor Rachel Reeves and then-foreign secretary David Lammy said they were “frustrated” by the failure to reach an agreement with Mr Abramovich.
Speaking after the licence was issued on Wednesday, Ms Reeves said: “It’s unacceptable that more than £2.5bn of money owed to the Ukrainian people can be allowed to remain frozen in a UK bank account. It’s time for Roman Abramovich to pay up.
“If he doesn’t act, then we are prepared to do what is necessary to make sure that money gets to the Ukrainian people.”
Foreign secretary Yvette Cooper said: “This money was promised to Ukraine over three years ago. It is time Roman Abramovich does the right thing, but if he won’t – we will act.
“That’s why the licence has been issued. It is time this money was used to rebuild the lives of people who’ve seen devastation as a result of Putin’s illegal war.”
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